pretty well. There was a time when people considered website design as bit of a mystery - something that was done by a relatively small number of people, and done well by an even smaller number.
Software developers saw a gap in the market, and site construction applications began to pop up like daisies in summer. I say 'construction applications' because that's what they were - software that enabled people to build sites, rather than design them.
There's a difference between designing a site and getting it up onto a server so all the world can see it. Lots of people are very good at site construction but they lack the ability to design - they need someone else's ideas about layout, colour, mood, etc., and they can't write a decent paragraph of text.
It's rare for someone to possess both the design skills and the technical ability to translate a design into on-line reality, and that's where good software comes into its own. Nowadays a decent designer can use any one of several excellent products to create a working site from his/her design concepts - it's no longer necessary to have much (if any) knowledge of coding. Designers can call on freelancers when they need special server-side facilities for data-driven sites and complex e-commerce situations.
My advice to newcomers has always been the same - be honest with yourself about your abilities, and play to your strengths. If you're a technical wizard with little design sense concentrate on that, and if you're a designer who can't set up a database, don't waste time - there are plenty of people who will do that for you. A career in web-design might appeal, but think very carefully; the market is crowded, and clients aren't exactly throwing money around just now. You might spend some time reflecting on what fourm member has said about the future.